Feel Like Jumping Off A Cliff Suicidal!

[car67]

Well just when I think stuff is ok I get news today that a vendor is not going to pay me $6000 earned this month and that money was earmarked for a $2300 mortgage
and a $2100 late payment on the arrears of my first. I am in a 6 month plan to pay off arrears and I am on currently on the 4th month of that plan and I am 14 months into my CHAP 13........ I am current on the home and Chapt 13 however I know I cant make
$6000 in 2 weeks to replace this income to meet my legal obligations. I can recover within within 60 days no worry but by then I am late on the home payment ect..........

Just thinking out my options so I can plan and my attorney is gone till Monday so hopefully some other crows will land here and chime in.....

Is it possible to just dismiss the BK and refile in 60 days which restarts my plan and then moves the arrears into the plan 100% versus this two payment system I am stuck in trying to carry the load on. I know the foreclosure would not be swift since I am current and its not being able to afford its just a crippling blow to my cash flow will not let me meet my deadlines to be compliant? Am I thinking of the correct strategy at this junction? Thanks Car67

[justbroke]

First, please relax and know that this isn't the end of the world. There are many options and there is no sense in panicking to the point where you want to hurt yourself. If you are having thoughts of hurting yourself, please immediately seek medical attention. There are medications and treatments that will help you through the lows.

Now, that I've said that... let's deal with the issue. I'm assuming that you went into arrears AFTER you confirmed (or started) your Chapter 13 Plan. This tells me a couple of things (combined with other information). First, that your income is irregular and secondly that you are having budgeting issues with your plan.

First, I would never recommend going into a Chapter 13 with irregular income. This is how you can easily mess up in a Chapter 13. If you tell me that your Chapter 13 payments are all on time and your mortgage is paid outside the Plan, combining that with irregular income is a disaster waiting to happen.

If you let the Chapter 13 dismiss and refile, you may be considered a serial filer, and the automatic stay will not protect your home. Additionally, should the lender file a motion for relief from stay (MRFS) before dismissal, the judge may hold the dismissal until the home forecloses so that you can't refile. (They do this specifically to prevent people from abusing the automatic stay.) Sometimes, the penalty is only 6 months before you can refile, but that's enough time for a lender to mount a serious foreclosure case and prosecute it through judgment (if they are serious about it).

You will need to work with your attorney. There may be several options. In some cases, the Trustee and Judge may allow post-petition arrears to be rolled into the plan. However, they usually want these paid quickly (within 6 months) and all other payments are still due. Another option may be to go to the lender and ask to deal with the arrears again and "threaten" that you'll surrender the home and be done with it.

This is the perfect time to re-evaluate your finances and expenses. Perhaps the home is just too much. Again, if you're self-employed and have irregular income, I don't know how you can be successful in a Chapter 13 over the long term. I'm also wondering how you got into arrears post-petition. If this is due to irregular income, then the home may just need to go and you get something smaller (rental).

You may know this but I'm saying for the benefit of others that may later read this thread. The moment, instant, second, that you have any financial difficulty or even the inkling of a potential shortage while you are in a Chapter 13... immediately, and with all due haste, contact your attorney. If you wait too long and actually start missing payments, then it becomes a harder issue to fix.

[car67]

JustBroke thank you for advice

JustBroke

As always thank you for your answers. Your a talent and a blessing to this forum.
Yes I am self employed and income is up and down. But the house is affordable its just a perfect storm this month coupled with the vendor refusing to pay me this month. I am just looking to wiggle some room to allow me to work harder to cover the bills by AUG versus July. In my line of work and this economy its going to be tough to profit $6000 to cover everything timely this month. I had it covered if this one vendor would have paid as owed but thats not helping me today. Believe me I have considered the idea of letting the house go and getting a rental for less for the cushion but as you know a rental free"s up more money for the trustee and being self employed the mortgage interest write off is nothing to sneeze at. Plus I am in a postion with the house that I am thinking I am at break even on the value with the decline. Yes I am paying off 6 payments post petition with the courts and I was working to make the 4th payment until this hiccup hit me. If I can someone how buy 30 days to get on track and or roll these last 3 arrear payments into the plan I will recover and be on a good track. Its just paying two large payments has killed my cash flow coupled with a non payment from a vendor caused the perfect storm.

[justbroke]

I understand exactly where you are and I appreciate that you have already taken a look at the financial aspect of keeping or surrendering the home. I hope that you can find some ground here and can, through your attorney, explain the circumstances that require you to take a single "pay" holiday so that you are back on track. Don't overwork yourself to the point where you crash and can't recover.

Best of luck to you!